Randgold posts earnings boost but debt looms

RANDGOLD Resources yesterday reaffirmed its position as a top performer in the gold mining sector, with a 14 per cent rise in first-quarter profit on higher production.

The FTSE 100-quoted west African miner said profit from mining activity for the quarter ended 31 March rose to $171m (£100.8m) from $150.4m a year earlier.

Production rose to a record 283,763 ounces from 199,013 in 2013, due to higher output from the Kibali mine in the Democratic Republic of Congo, its largest project to date. But chief executive Mark Bristow warned that the proudly debt-free firm may finally have to tap into the $200m revolving credit facility it took out last year, to settle a big tax bill in Mali this quarter.